Town of Bluffton proposes 'Small Home Series'

Sunday

May 11, 2014 at 12:20 AM

SCOTT THOMPSON

The town of Bluffton is considering a new affordable housing program that would allow residents to demolish their old mobile homes and move into brand new modular ones. But some issues still need to be resolved before a final draft is crafted, according to town staff.

The town's affordable housing committee received a presentation Tuesday from staff outlining the "Bluffton Small Home Series."

The program would offer 24 prefabricated modular designs to residents and developers. The town would seek grant money to provide financial assistance to residents for additional construction costs. The homes would be assembled in sections by Nationwide Homes - either in a factory or on site.

The proposal comes on the heels of the completion of the $1.2 million Wharf Street Redevelopment Project, in which the town constructed six homes and sold them to buyers. Under the "Small Home Series," the town would instead sell house plans to residents or developers, who would then build a home.

Shawn Leininger, assistant director of growth management for the town, said most of the homes would be placed in a few target areas, including Old Town, Goethe Road and Buck Island and Simmonsville roads. A recent survey of Old Town revealed at least 59 homes that could be replaced, he said.

Price options

Leininger said a list of more than 100 designs was whittled down to 20, while the other four were used in the Wharf Street project. The designs run as small as a one-bedroom, 600-square-foot home to a four-bedroom, 2,000-square-foot home.

Homes with the same number of bedrooms and bathrooms would also be different sizes to provide cost options for buyers, Leininger said. For example, a three-bedroom, two-bathroom, 1,328-square-foot model would have a base cost of about $57,000. A larger, 1,520-square-foot home with three bedrooms and two bathrooms would run about $84,000.

But there are other factors not added into those costs, Leininger said.

"You still have to add in the costs to build the foundations, obtain site permits and do other prep work on site," Leininger said. "So we'll have to work to address some of those things, as we get further into the program."

Under the proposed criteria, applicants would have to be Bluffton residents. Those applying under the Affordable Housing Initiative could make no more than 120 percent of the area's annual median income, Leininger said.

Though the U.S. Department of Housing and Urban Development (HUD) has not released its 2014 figures, a family of four would have to make $80,400 or less to qualify under the 2013 numbers. For a family of three, it would be $72,350 or less.

Buyers would have to pay at least 60 percent of the costs and tear down their old mobile homes once the modular ones are completed. The town would apply for grants similar to ones used for the Wharf Street project to help cover the rest of the costs, Leininger said.

Focus on affordability

There are still issues to sort out, Leininger and committee members pointed out, including the costs of relocating the mobile homes, land ownership and heirs' property rights that could muddy up the purchasing process.

One idea, Leininger said, would be to partner with developers to place the homes on vacant land in town.

"But if we do that," committee member Sherri Bush said, "I want to make sure there are parameters in place, and developers aren't taking advantage of the buyers. I don't want the developers to take a $67,000 house or whatever and flip it for $120,000. My concern is keeping it affordable."

Town councilman and committee chairman Fred Hamilton said any developers would need to be held to HUD standards.

"I don't think council is going to support the town taking on another affordable housing project (by itself) again," Hamilton said. "So we have to make this attractive for a developer to participate, but we need to have assurances that they fall back on HUD requirements. That's the only way I'd feel comfortable partnering with any developer."

The committee will review the proposal and will likely vote on a final draft at its June meeting. If approved, the proposal would go to Town Council for final approval.

"These are beautiful homes, and the price point is very attractive," Hamilton said. "We see similar designs going up around town already, so I think this is something that can be mimicked throughout the entire community."

Councilwoman Karen Lavery agreed.

"I think we would probably have full support from all of council on this," she said.

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